News & Financial Advice

Lindt & Sprungli has increased its net profit in the first half but remains cautious for the year 2010 because of the volatile commodity prices and foreign exchange.

Net income was posted at 24.8 million francs (18.8 million euros) in the first half, almost tenfold from 2.7 million achieved a year earlier, said Tuesday the Swiss chocolate.

Analysts polled by Reuters on average expected 20.4 million.

"Despite the excellent results of the first half of 2010, Lindt & Sprungli sticks to what it was made public in March 2010, the company said in a statement, citing an economic environment not yet fully consolidated and conditions still volatile.

It confirms expected this year organic growth of 5% to 7% and operating profit (EBIT) of 300 to 340 million francs.

The EBIT after exceptionals jumped by 40.7% in the first half, to 33.9 million francs, against 26.8 million expected by the market. Turnover increased 7.9% to 1056.6 million (against 1.043 million expected), after 979 million in the first half of 2009.

In value terms, the group notes that most of the chocolate market grew moderately in the first half, while in terms of volumes, it continues to see a certain stagnation.

The European Commission announced that it authorized the repurchase of the French specialist of the PPE Sperian by the American conglomerate Honeywell, as the operation does not affect competition.

The transaction represents 1.4 billion dollars (1.06 billion euros), a sum which includes the takeover of Honeywell debt of 300 million euros Sperian.

The European Commission has estimated that all Honeywell-Sperian will face a significant number of competitors.

The American group, who beat the investment fund Cinven for redemption Sperian has developed on the segment of protective equipment in recent years. He acquired Norcross Safety Production including $ 1.2 billion in 2008.

Wall Street opened up after the publication of a series of better than forecast, reassuring investors who feared a slowdown in U.S. economic recovery.

A few minutes after the start of trading, the DJIA gained 0.22% to 10,252.59 points, the Standard & Poor's 500 index 0.44% to 1087.88 points and the Nasdaq Composite 0.35% to 2230.22 points.

The title Apple earned $ 262 4% after reporting a result well above expectations, boosted by higher sales of its Mac computers.

Prices are also supported by banking stocks Morgan Stanley and Wells Fargo have both published results better than expected, reassuring investors concerned about the health of the U.S. banking sector.

Both titles and took respectively 7.06% and 4.36% in early trade.

Sales at department stores conducted between last Wednesday, the first day of sales, and next Saturday are up 10-17% in Paris and about 6% in the province over the same period of 2009, told Reuters Claude Boulle, Chairman of the Union of the great trade center (UCV).

This period, during which traders are allowed to sell at a loss, will end Aug. 3.

"We are surprised by such enthusiasm," said Claude Boulle, who gives the rain, precipitation related to the timing of sales compared with the academic pace and demands of tourists, especially from emerging countries like Asians or Brazilians.

Claude Boulle, however, refuses "to be triumphalist" for now because, he says, should not at this very good start followed by a drop in purchases after July 15.

"The balances are played on a shorter and shorter," he observes.

As every year, the discounts offered in the department stores were included in 30 and 50% and new markdowns could be proposed "if there are still things to sell," added Claude Boulle.

The TCU brings together nearly nine billion euros in turnover with 600 stores in 300 cities in France, such as Galeries Lafayette, Printemps or C & A.

The players in the credit market begin the second half hoping to disappear or at least diminish the negative impact of the crisis of sovereign debt in the eurozone, which has largely contributed to the resurgence of risk aversion in the second quarter.

This crisis, which does not seem to have exhausted all its reserves, has hurt all risky assets, starting with the shares losing 7% to 19% since the beginning of the year in Europe.

Corporate bonds (corporate credit) have also suffered, premiums (spreads) having substantially eliminated.But they broadly maintain performance of 3.6% since the beginning of the year, while government bonds from all countries, took 2.4%.

"The second quarter of 2010 defeated the job right the first quarter due to the escalation of the crisis of sovereign debt.Risk aversion has increased rapidly, all assets have suffered (…) Credit spreads have strayed far beyond their level of early 2010, "credit strategists explain the General Society in their quarterly report.

Also taking stock of the quarter, analysts of Raiffeisen Capital Management noted that the credit offers "indisputably positive returns" to the beginning of the year.

But they add that with the sharp decline in bond rates – including German rates that serve as reference in the euro area – linked to the flight to quality stocks, "the potential of absolute return is now very limited."

"The high yield bonds (high yield bonds), the positive fundamentals, seem more attractive," they say.

Groupama Asset Management, as Societe Generale predicts a slowdown of the economy, promote investment grade credit and approach "stock picking" for high yield.

TIGHTENING OF SPREADS

Amund Asset Management, a leading European asset management, which is more optimistic about global growth, also favors the credit.

The sovereign crisis has largely closed the secondary credit market. The primary market, which had started on a flying in January led by financials, has been almost nonexistent from mid-April but has shown signs of lethargy output.

"The market recovered slowly and now spreads are improving.We believe that sovereign issues have less impact on the market and the spreads will be tighter at the end of the year compared to levels earlier this year, "say the strategists of Societe Generale.

After a very active quarter on the primary market, they are reviewing their forecasts down significantly from private bond issues to take into account also the small traditional activity in the third quarter.

They now expect 110 billion on non-financial corporate issues in 2010, or 55% less than in 2009 which was a record year where businesses, faced with tighter bank credit due to financial crisis, have use the market to restore their balance sheets.

They no longer need as use the market given the low investment costs, a lack of mergers and acquisitions and the continued improvement of treasury already abundant.

Societe Generale brings its projected emissions of senior debt of financial companies from 200 to 150 billion euros for 2010, against 152 billion in 2009. For emissions of subordinated debt, the forecast is reduced from 33 to 20 billion euros, against 17 billion in 2009.

Wall Street fell nearly 1.5% on Thursday because of concerns about the state of the economy after the lukewarm assessment of the Federal Reserve on the pace of recovery in the United States.

The Dow Jones 30 industrials surrendered 1.41% or 145.64 points at 10,152.80. The S & P 500 is broader, lost 18.35 points, or 1.68%, to 1073.69.The Nasdaq Composite fell on its side of 36.81 points (-1.63%) to 2217.42.

The U.S. stock market has also suffered from the approach end of the legislative process of the radical overhaul of financial regulation, which should translate into lower profits for banks.

It is likely that the Democrats will retain bargaining provisions to severely restrict the activities of the banks own account, and some of their investments, not changing the text at the margin.

JP Morgan Chase and Bank of America have respectively lost 2.21% to 38.03 dollars and 2.66% to 15.02 dollars while the S & P financials grouping yielded 2.07%.

The good statistics of the day – orders of durable goods fell less sharply than expected enrollment and weekly unemployment fell more than expected – were enough to overshadow the comments of the Federal Reserve recognizes the fragility of economic recovery U.S..

"There has been little good news this week and reformed the financial system has further obscured the situation," said Alan Lancz, president of Alan B. Lancz Associates.

In terms of values, as Dell has lost 6.44% at 12.93 dollars, the investors had not been very convinced by the growth strategy announced in the day by the manufacturer of micro-computers.

Japanese stocks ended down Tuesday on profit-taking, the euphoria at the European level stabilization dissipating rapidly.

The Nikkei lost 1.14% or 119.60 points to 10,411.10 points and the broader TOPIX, yielded 1.33% or 12.54 points to 932.10 points.

Mizuho Financial has finished in fall of 4.68% to 163 yen on expectations of capital increase.

Sumitomo Mitsui Financial Group lost 3.63% to 2,815 yen, its affiliate that specializes in consumer credit Promise tumbled 17.38% to 713 yen after providing it might be lost.

Toyota Motor ended down 0.7% to 3495 yen, before the publication of its results just after the closing.

The food group Ajinomoto forsaken 3.65% to 818 yen.The company said its operating profit to 57 billion yen this year, down 11% from the previous year and below the consensus of 66.4 billion yen Thomson Reuters I / B / IO

Nicolas Sarkozy has once again ruled out any increase in compulsory levies to finance the pension reform, but confirmed that efforts would be applied to high income and capital income, Monday, May 10 at the sides.

"There is (…) two solutions that do not seem desirable: touch the pensions of retirees and believe, as so often in the past that rising tax burden would be the answer to all our problems," said M . Sarkozy during his opening statement released by the presidency.

"It would in fact reduce the living standards of the French and penalize growth.I am deeply convinced that a demographic challenge must first demographic responses "such as delaying the age of retirement or increasing the contribution period, he added, referring the issue of pensions, though not the agenda of the Social Summit.

Labour Minister Eric Woerth had mentioned last week, one of the tracks government work, an increase in resources for Old Age Solidarity Fund (FSV), mainly fueled by a fraction of revenues from the CSG (Contribution Sociale generalized).

Nicolas Sarkozy has once again vowed on Monday to trade unions and employers that the planned reform would be "fair", confirming such an "additional financial effort high income and capital income.

The Head of State also confirmed that Eric Woerth made public next week a "guidance document which will indicate the principles set for the reform, which will be a new stage of comprehensive cooperation."